Blockchain Buzz Newsletter V1

MATIC Price Analysis:

MATIC Price Analysis: The early week relief rally in MATIC price face replenished bearish momentum at $0.687 resistance.

Immediately, the coin price continued its downward approach and showcased three consecutive red candles in the daily time frame chart.

With sustained selling, the prices will retest the $0.51-$0.5 support and check whether the polygon coin is ready for a new recovery cycle or not.

MATIC Price Daily Chart

1. The long-coming resistance trendline governs the correction phase in MATIC
2. A coin price may face high demand pressure at the $0.5 mark
3. The intraday trading volume in the MATIC is $562.5 Million, indicating a 28.5% gain.

BlackRock spot Bitcoin ETF

The US House Financial Services Committee Chairman Patrick McHenry has expressed his support for the BlackRock Bitcoin ETF. He tweeted on June 14, 2023, that he will closely watch the US SEC's response to spot Bitcoin ETF filing by financial services giant BlackRock's iShares. He also said that the SEC should not discriminate against Bitcoin ETFs just because they are digital assets.

The BlackRock Bitcoin ETF is a proposed exchange-traded fund that would track the price of Bitcoin. It is the first Bitcoin ETF to be proposed by a major financial institution. The SEC has not yet made a decision on whether or not to approve the ETF.

McHenry's support for the BlackRock Bitcoin ETF is a sign that there is growing support for Bitcoin ETFs in the US Congress. In March 2023, a bipartisan group of senators introduced a bill that would direct the SEC to approve Bitcoin ETFs. The bill is currently being considered by the Senate Banking Committee.

If the SEC approves the BlackRock Bitcoin ETF, it would be a major milestone for the Bitcoin industry. It would make it easier for investors to get exposure to Bitcoin through a traditional investment vehicle. It would also legitimize Bitcoin as an investment asset.

Stablecoin Race: DAI Surpasses BUSD Amid Binance-SEC Regulatory Row

DAI stablecoin, with a circulation of around $4.6 billion, has surpassed BUSD amidst mounting legal troubles for the worlds largest crypto exchange, Binance.

The market capitalization of BUSD has declined to $4.3 billion following the regulatory drama that started earlier this year.

1. According to data from CoinMarketcap, BUSD circulation is down over 70% since the beginning of the year. During the same period, the circulation of DAI has also retraced but by only 20%.

2. BUSD was launched in 2019 under the umbrella of Binances Project Venus. Although the crypto exchange does not issue the stablecoin, it has been on a downward spiral for several months now.

3. The first major blow to BUSDs trajectory was Paxos move to stop minting the stablecoin at the end of February at the direction of the US New York Department of Financial Services (NYDFS).

4. In March, the Commodities Futures Trading Commission (CFTC) filed suit against the exchange for improper licensure and offering US consumers the wrong financial products.

5. The subsequent lawsuit by the SEC against Binance forced the crypto exchange to delist eight BUSD trading pairs from its margin trading platform.

6. While BUSD has shown impressive resilience in the face of turbulence as it managed to maintain its position among the top three most dominant stablecoins for several months, however, the recent surge in burn rate finally pushed its supply below that of DAI.

7. Zooming out, the persistent regulatory attacks on the industry have translated into a decline in the whole stablecoin market, which can be viewed as a sign of capital draining from the digital asset space and a troubling trend.

8. This weeks deviation of USDT from the $1 peg further fueled FUD narratives, but Tethers CTO reassured users that the company is ready to redeem any amount.

3 key Ether price metrics point to growing resistance at the $1,750 level

Ether's price looks poised for additional downside as low as the $1,560 level.

Ethers price plunged 7% between June 14 and June 15, reaching its lowest level in three months and impacting investors’ view that the altcoin was en-route to turning $2,000 to support.

It is worth noting that the 1,620 bottom represents a 196 billion market capitalization for Ether (ETH), which is higher than PetroChina’s 186 billion and not far from chipmaker AMD’s 198 billion.

Being the 66th largest global tradable asset is no small feat, especially considering that the cryptocurrency is merely eight years old and does not return any kind of direct profit for the project’s maintenance. On the other hand, securities enjoy the benefits of corporate earnings and eventual government subsidies, so perhaps investors should be concerned by the recent price drop in Ether.

Ether price pressured, succumbs to regulation and lowered network activity

Regulatory pressure helped to subdue investors’ appetite for Ether as the Securities and Exchange Commission proposed a rule change regarding the definition of an exchange. Paul Grewal, chief legal officer of the Coinbase exchange, has pushed back against the proposed change, claiming that it violates the Administrative Procedure Act.

More concerningly, decentralized application (DApp) usage on the Ethereum network failed to gain momentum despite gas fees plummeting by 75%.